The USDA announced a change in the pay prices for butter and nonfat dry milk.
Effective immediately, the Commodity Credit Corporation will increase the pay price for butter by 19.99 cents to $0.8548 per pound. The price for nonfat dry milk decreased by 10.32 cents to a price of $0.90 per pound. The purchase price for block Cheddar and barrel cheese did not change.
The decision to change the butter and nonfat dry milk prices was based on the following factors:
- An accumulation of nonfat dry milk stocks that are well above the USDA’s ability to use the product.
- The level of expenditures to the USDA.
- Significant market distortions.
Under the Milk Price Support Program, the USDA can adjust the balance between butter and nonfat dry milk purchases twice each calendar year.